UK leads climate risk, firms unready amid net-zero push

Capgemini has published new research showing that most global organisations will increase investment in environmental sustainability over the next 12 to 18 months, despite ongoing global uncertainty.

The report, 'A world in balance 2025: Unlocking resilience and long-term value through environmental action', surveyed 2,146 executives from 716 organisations worldwide, including 162 executives from 54 UK organisations. The research highlights that 82% of organisations globally now consider sustainability investment a key strategy for future-proofing against ongoing disruptions and challenges.

UK trends

The survey findings show that UK organisations remain particularly committed to their net-zero goals. According to the data, 95% of UK respondents have not changed the timeline of their net-zero commitments, despite intensifying external environmental pressures.

At the same time, more than half (54%) of UK organisations feel underprepared for the direct impacts of climate change, reflecting a wider trend identified in the global data. This preparedness gap indicates a difference between the existence of climate strategies and the execution of concrete resilience measures.

UK executives identified regulations (69%) and business profitability (68%) as the two primary drivers behind sustainability investments. Less than half of sustainability investments in the UK are motivated by a broader responsibility to mitigate climate change. Nevertheless, 72% of UK executives believe that investment in sustainability enhances stakeholder trust and improves brand reputation.

The research also found that the UK leads in climate risk assessment globally, with 83% of UK organisations having conducted a formal climate risk assessment - significantly higher than the global trend.

Global outlook

Internationally, over four in five organisations intend to increase investment in environmental sustainability, an 8 percentage point rise from the previous year. Regulatory compliance was identified as the leading impetus for sustainability initiatives, followed by business value considerations including profitability, cost savings and operational efficiency.

The survey results also highlight rising pressure on organisational leaders to demonstrate accountability and scientifically based sustainability progress. However, only 21% of organisations globally have developed detailed transition plans that include interim targets and capital allocation. Internal challenges cited include budget constraints, limitations in data collection and measurement systems, and operational silos. External challenges include geopolitical factors, with nearly two thirds of executives stating these have slowed progress on sustainability investments and projects.

"Although sustainability regulations are putting less pressure on organisations, business leaders still see sustainability as a core driver of business value. However, with global uncertainty and constrained budgets, many companies are facing a reality check," says Cyril Garcia, Head of Global Sustainability Services and Corporate Responsibility, and Group Executive Board Member at Capgemini.

"With climate risks increasingly high on the corporate agenda, business leaders need to adopt a pragmatic, operational approach and urgently implement concrete, financed transition and adaptation measures. This will not only build true resilience, but also fuel innovation and competitiveness."

Implementation challenges

The survey notes significant disruption caused by climate change, with more than 70% of executives reporting impacts on supply chains, production, and raw material sourcing. Two thirds of respondents anticipate continued challenges, particularly in managing insurance or financial risks. While the majority claim to prioritise climate adaptation, over half consider their organisations underprepared for these effects. Only a minority are upgrading infrastructure (38%), shifting production (31%), or redesigning products (26%) to adapt to climate change.

Technology in focus

The report details the increased use of AI to support sustainability aims - nearly two thirds of executives state their organisations leverage AI for their environmental agendas. However, the environmental footprint of AI is a growing concern, with 57% of executives noting that the impact of generative AI is now discussed in boardrooms. Fewer than a third of organisations have taken action to mitigate this impact. The report reveals growing caution about AI, as the proportion of executives who believe its benefits exceed its environmental costs fell from 67% in 2024 to 57% in 2025.

Gap between brands and consumers

The research finds an expanding trust gap between brands and consumers in relation to sustainability. More than 60% of consumers now believe companies engage in greenwashing, an increase from one third in 2023. Over three quarters of consumers think corporations should do more to reduce greenhouse gas emissions. Only 25% of consumers consider sustainable products affordable, and just 16% feel they have adequate information on sustainability when making purchasing decisions.

The report is based on a survey conducted by the Capgemini Research Institute, which gathered insights from executives and consumers across 13 countries and 12 industries.